Assume that the answer to the question above ( question 8 ) is $ 6 0 million
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Question:
Assume that the answer to the question above question is $ million and debt continue to have a market value of $ million. Compute the return on equity for this firm after recapitalization if the tax rate is given the cost of equity for an unlevered firm is and cost of debt is Solve for the value of equity first
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